Capitol Corridor: A Performance-Based Management Model FRA Best Practices - State IPR Corridor Management AASHTO – SCORT Annual Meeting, Washington DC [2/22/12] David B. Kutrosky, Managing Director Capitol Corridor (Sacramento-Oakland/San Francisco-San Jose)

Capitol Corridor Service Area 170-mile route (~290 track miles) –168 miles-UPRR –2 miles-Caltrain (SF Peninsula) 3 distinct service-area Megaregion –Sacramento / Sierra Foothills –Oakland / S.F. Bay Area –San Jose Extensive connections to local transit and communities Operated by Amtrak under management of Capitol Corridor Joint Powers Authority (CCJPA) February 22,

CCJPA OBJECTIVES Know your product/service Identify goals for service’s success Efficient and effective management team Incentivize your partners -- service users and providers and financiers Maintain control of service performance Guide expansion via collaborative efforts February 22,

CCJPA Structure Managing Director Planning & Projects EngineeringMechanical Marketing & Communications Call Center & Customer Comments (BART) TransportationAdministration February 22,

Success of Past 13 Years ( ) Elevated core service: 8 daily trains to 32 – Increased frequency under flat State operating budget – 3 rd busiest Amtrak route in nation – Improved relationship with UPRR resulted in the #1 on-time performance in Amtrak system – One of the highest customer satisfaction ratings The performance data speaks for itself… February 22,

( ) Performance Improvements MeasureFY 1998/99FY 2010/11% changeFY 2011/12 YTD Ridership463, million269% improvement +7% Revenue$6.25M$27.2M335% improvement +10% System Operating Ratio 30%48%60% improvement 50% Service Level8 daily trains 32 weekday trains (22 weekend trains) 300% improvement Same On-Time Performance 86%95%Standard = 90% 94% February 22,

Capitol Corridor enters into an annual operating contract –Service/Schedule –Budget and payment provisions –Performance Standards; incentives + penalties Surveys (twice a year) to gauge customer satisfaction Distinct State source of funds (diesel sales tax) –Requires early budget planning process (at least 6 months) –Lock in budget; share risk; focus on improving customer service Review performance: bi-weekly calls; quarterly meetings Make sure front line employees know what’s going on! Amtrak Operating Agreement May 15, February 22,

Capitol Corridor amended out of national Amtrak-UP OTP agreement into a stand-alone 3-party contract –Ensure payment to RR for Capitol Corridor OTP –Eliminated penalties, “look-backs” of national OTP agreement –Each month “hit restart button” Same definition for “on-time” but bar raised to min 92% Payments increased: –by 50% if continued 92%-96%; –by 100% if continued 96+% Benefit of single RR owner who dispatches trains Results: Best OTP in Amtrak; UP earning max incentive Tri-Party On-Time Performance Agreement February 22,

Part of Construction/Maintenance Agreement –Continuously revised as funds are allocated –Funding above Amtrak incremental MoW payments Private-Public Partnership/shared funding 1.Night-time surfacing gang assigned to route 2.Various track upgrades: switches, signal lights, et al 3.Safety Fences: deter trespassing Improved ride quality; no slow orders Results: Retained ridership during down economy; highest customer satisfaction Supplemental Capitalized Maintenance February 22,

Ridership and Gas Prices February 22,

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Buy-in from service providers/operators Support from public/users; gain advocates Secure dedicated funding Get funds obligated quickly; get project “in the ground”; successful phased implementation Tout benefits to policymakers, communities; need for continual investment to meet growth demand viable alternative jobs, economic growth offset rising gas prices reduce GHG emissions THANKS!! February 22, CLOSING